Thanks! I am going to install myself, the battery with an inverter and charger into my work truck. It will be over 5kw, but well under 1 megawatt. I do not understand if the "prevailing wage and apprenticeship requirements" are pertinent in my case or even what they are. If this doesn't seem like a credit I could use for my business, I will be getting less than 5kw storage to save some cash. Here is some more info that I've been reading, much of it pulled from the section you posted but put into layman's terms.
https://www.energysage.com/blog/inflation-reduction-act/#commercial-solar :
"Energy storage:
Currently, for storage (aka battery) systems to qualify for the ITC, they need to be paired with solar and have to be powered by solar at least 75 percent of the time for five years. However, starting in 2023, all residential storage systems (regardless of whether they're paired with solar) will be eligible for the full 30 percent tax credit as long as they're over 3 kWh in size.
Commercial storage projects must be larger than 5 kWh in size and are subject to the same prevailing wage and apprenticeship requirements as commercial solar projects to receive the full 30 percent ITC."
"Things get a bit more confusing if a commercial solar system is over 1 megawatt (MW) in capacity. The Department of Treasury is currently trying to define metrics around prevailing wage and apprenticeship requirements to support projects using union labor. When these metrics are defined, after 60 days, commercial projects over 1 MW will receive a six percent base credit. The remaining 24 percent relies on the project meeting the necessary labor requirements."
https://www.energy.gov/eere/solar/federal-solar-tax-credits-businesses#_edn9 :
"What projects are eligible for the ITC or PTC?
To be eligible for the business ITC or PTC, the solar system must be:
- Located in the United States or U.S. territories[6]
- Use new and limited previously used equipment[7]
- Not leased to a tax-exempt entity (e.g., a school), though tax exempt entities are eligible to receive the ITC themselves in the form of a direct payment.[8]
What expenses are eligible for the ITC?
......
- Energy storage devices that have a capacity rating of 5 kilowatt hours or greater (even if not charged with solar)[9]
......"
https://southfacesolar.com/solar-blog/do-solar-batteries-qualify-for-tax-credits/ :
"How to Get the Solar Tax Credit for Solar Batteries
....To qualify for the credit, you must:
- Own your battery system
- Own the property your system is installed at
- Have taxable income
You don’t have to apply for the solar battery tax credit—you just need to claim it on your federal taxes. To get the credit, make sure you keep all receipts associated with your installation. Then, obtain and complete IRS Form 5695 (for commercial taxpayers, IRS Form 3468). Finally, add your credit information to your typical IRS Form 1040."
